(CNN Money) — Deutsche Bank is retreating from Wall Street and making “painful” jobs cuts in its investment bank after reporting a slump in profits.
Germany’s biggest bank said net profit fell by 79% to €120 million ($146 million) in the first quarter of the year.
In a statement, Deutsche Bank said it would focus investment banking on businesses that serve its core European client base, reducing its commitment to the United States and Asia, and review its global equities business.
“These actions will involve cost reductions,” said CEO Christian Sewig in a statement. “These cutbacks will be painful, but they are unfortunately unavoidable if we want to be sustainably profitable in the best interests of our bank, our clients and our investors.”
Shares in Deutsche Bank were 2.5% lower in Frankfurt.
The German bank surprised investors earlier this month by announcing that former chief executive John Cryan would leave after failing to turn an annual profit during a tenure that lasted under three years.
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Sewing, who joined the lender as a teenager and most recently led its retail banking division, made clear that he would accelerate changes to the bank’s structure and strategy. He has said the lender must do more to control costs, and focus on wealthy private clients.
“Even a quick look at the figures makes one thing clear: we have to take action — fast,” said Sewing.